Passa ai contenuti principali

Legend Connected In China At The Highest Levels Says Basel III Is Fueling Massive Central Bank Gold Buying | King World News

Legend Connected In China At The Highest Levels Says Basel III Is Fueling Massive Central Bank Gold Buying | King World News

Legend Connected In China At The Highest Levels Says Basel III Is Fueling Massive Central Bank Gold Buying

April 24, 2019
Legend Connected In China At The Highest Levels Says Basel III Is Fueling Massive Central Bank Gold Buying

Today a legend who is connected in China at the highest levels told King World News that Basel III is fueling massive central bank gold buying.

Russia & China Buy As Gold Market Raids Continue
April 24 (King World News) – John Ing:  "Gold is hitting some important technical levels after being hit in the last ten days by two dumps of 11,000 contracts on the downside.  That has taken the steam out of a rally that I believe was going to test that $1,325 level…

Insiders Buying
Meanwhile, Russia and China have been buying gold.  In fact, China has been buying gold four months in a row.  So there has been this continued physical offtake, and this decline in the price of gold has nothing to do with fundamentals.  And you see the continued merger and acquisition activity in the gold mining sector, which included Newmont and Barrick making peace by setting up a joint venture in Nevada.  So when you see central bank buying — they are the biggest insiders — and then you see the gold industry themselves buying each other, that's telling me that prices today are very attractive.

Large Investors Also Buying
And, Eric, when I talk to large investors, they have not been selling.  In fact, they have been buying on these pullbacks in the high-quality names in the mining sector.  Rob McEwen has been talking about how attractive the valuations are in the mining sector right now, so that tells you how undervalued the space is at this time."

Eric King:  "What about all of this central bank buying of gold that you mentioned?"

John Ing:  "China is the largest producer of gold in the world and yet they keep importing gold.  On top of that the world is facing peak gold production, where production will be declining dramatically for many years to come.  And countries are watching the dollar constantly being debased, which is why China, Russia, and many other countries continue to buy gold…

Russia has dumped US Treasuries and they have now become the 5th largest holder of gold in the world.  China is following suit, becoming the 6th largest holder of gold in the world.  This is after four consecutive months of buying.  Every month China seems to be buying significant quantities of gold in London.  And we know that the Shanghai Gold Exchange is the largest physical gold market in the world.  So China is well on its way to rivaling the United States with its 8,000 tonnes of gold.

Basel III Fueling Massive Central Bank Gold Purchases
And of course with Basel III, which was just enacted, gold can now be margined at 100%.  This will serve to continue to drive physical demand for gold by central banks.  This central bank buying is not only very real, it's very aggressive.  It's the highest pace of buying in 50 years, since the US essentially went off the gold standard."

Commenti

Posta un commento

Post popolari in questo blog

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial
Posta un commento
Continua a leggere

3 Reasons Why Gold Will Outperform Equities And Bonds

3 Reasons Why Gold Will Outperform Equities And Bonds https://www.forbes.com/ 3 Reasons Why Gold Will Outperform Equities And Bonds For centuries, gold has played a major role in human history and has become interwoven into the financial fabric of society. Beyond its investment following, gold has become synonymous with wealth. Historically, gold's early use cases revolved around money – a form of "medium of exchange". After the second world war however, several countries and their respective currencies, started to shift away from the gold standard and migrated towards a fiat currency system. Today, gold remains largely a "Store of Value", and due to its unique properties and large number of use cases, it has managed to distance itself from other asset classes in terms of correlation, demand / supply drivers, and investment purpose. Gold's idiosyncrasies function as a double-edged sword, as it is challenging to predict
Posta un commento
Continua a leggere

What Will Stocks Do When “Consensual Hallucination” Ends?

The phenomenon works – until it doesn't. What's astonishing is how long it works. There is a phenomenon in stock markets, in bond markets, in housing markets, in cryptocurrency markets, and in other markets where people attempt to get rich. It's when everyone is pulling in the same direction, energetically hyping everything, willfully swallowing any propaganda or outright falsehood, and not just nibbling on it, but swallowing it hook, line, and sinker, and strenuously avoiding exposure to any fundamental reality. For only one reason: to make more money. People do it because it works. Trading algos are written to replicate it, because it works. It works on the simple principle: If everyone believes stocks will go up, no matter what the current price or the current situation, or current fundamental data, then stocks will go up. They will go up because there is a lot of buying pressure because everyone believes that everyone believes that prices will go up, and so they bid up
Posta un commento
Continua a leggere